This demand spike reflects the rapid evolution of AI technology, pushing TSMC to innovate further in advanced manufacturing, TechNode reports.

N3E, which started mass production last quarter, targets AI accelerators, high-end smartphones, and data centers. N3P, scheduled for mass production later this year, will cater to mobile devices and consumer electronics. It will likely be the standard by 2026.

To accommodate the growing demand, TSMC plans to convert some 5nm equipment to enhance 3nm production capacity, potentially increasing 3nm wafer production to between 120,000 and 180,000 units monthly. TSMC stock is trading higher on Thursday.

The contract chipmaker remains engaged in expanding its geographical presence beyond Taiwan. Recent reports indicated that TSMC is looking to recruit 2,000 employees in Europe, coinciding with its plans to construct a Dresden wafer fab.

Price Action: TSM shares were trading higher by 0.99% to $174.70 premarket at the last check on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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